Hooray for MasterCard (MA) and Visa (V), as a report by the Government Accountability Office, sent to the U.S. Department of Justice, describes just how tough it will be to change the structure of credit cards. The so-called interchange fee, the money that goes to a merchant’s bank, the card issuer, and to MA or Visa, presents a heavy burden for merchants, and it’s unregulated. Doing anything about it to lessen merchants’ burden, such as imposing caps on interchange fees, the GAO says, presents various “challenges.” Calyon Securities analysts this morning sounded positive about both MA and V, notes Briefing.com, because it seems the status quo will prevail in cards, at least for the present.
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